© 2017 Chevron

The next big thing…

Chevron Shipping Company

© 2017 Chevron

Chevron Shipping CompanyMission

2© 2018 Chevron

Mission

Chevron Shipping Company is the Marine Center of Expertise for Chevron.

We provide safe, reliable and cost-competitive marine transportation, manage

marine risk, and add value to the enterprise through our operations, technical,

project, and commercial support to our customers.

1 billion barrels

transported

annually

15 years

zero cargo

spills

$2 billion

annual freight

spend

2,000 employees

from 20 countries30 operated

vessels

123 years

Since first ship

launched

Chevron Shipping

Company Summaryby the numbers

© 2018 Chevron

© 2017 Chevron

Global Support of Chevron OperationsEnhancing value across the enterprise

Bonga

Agbami Infill

Nsiko

Sanha

Angola LNG

Moho Nord

Rosebank

Captain

Alba TCO

Gorgon Wheatstone North West Shelf

Kitimat LNG

Big FootPermian Anchor

Tigris

Richmond Clean Fuels Hebron

Frade Papa Terra

Chevron projects

Shipping employees

Crude oil

Liquefied natural gas

Products

Piracy risk

WafraUbon

Benchamas

Technical, construction, operational, commercial and legal support for:

• Ongoing Chevron operations (including joint ventures and affiliates)

• New major capital projects

• New business development

4© 2018 Chevron

Under regulated?

6 | MEPC 72 Outcomes & Industry Impact

Regulations Timeline

2013 2020 2025

NO

xS

Ox

CO

2O

the

r R

egu

lations

Phase

3 EEDI

?

Possible Future

Regulations

Ship

Recycling

Underwate

r Noise

Bio-

fouling

MBM

USCG

BWDS<1500

>5000 m3

Tier III NOx

N America ECA

0.1%

LSFO

ECA

Phase

0 EEDI

Phase

1 EEDI

Phase

2 EEDI

0.5%

LSFO

worldwide

New SOLAS Ch XIV IMO

Polar Code Jan 2017

IMO IGF Code Jan

2017

EU MRV

EU IHM

Existing

& Non-EU

US EPA VGP3 VGP4

Revised IGC Code

USCG

BWDS1500-5000 m3

EU

IHM

NB

US EPA VGP2

BWMC

08 Sept 2017

Black

Carbon

Tier III NOx

Baltic/North Sea

IMO DCS

The International Chamber of

Shipping (ICS) fears ‘chaos and

confusion’ unless the International

Maritime Organization (IMO) urgently

resolves issues concerning the

successful implementation of the 0.5

percent sulfur cap. – World Maritime

News

2020 Sulfur Cap - Panic And Shock

Ahead? – Seeking Alpha

IMO 2020 poses 'big risks’ –

Tradewinds

Will IMO 2020 Introduce Mayhem Or

Opportunity To The Refining And

Marine Sectors? – Forbes

Chaos! Confusion! Panic! Shock!

Mayhem!

© 2017 Chevron

Chevron Shipping CompanyOperated Fleet

Operated Fleet provides

• A core component of Chevron’s

marine transportation requirements

• World-class safety and

environmental performance

• Transferable experience

Operated Fleet

9 Very Large Crude Carriers

3 Aframax Tankers

3 Lightering/Shuttle Ships

10 Liquefied Natural Gas Carriers

4 U.S. Flag Tankers

CONVENTIONAL

SPECIALTY

Size and scale

8© 2018 Chevron

© 2018 Chevron

Operated Fleet Upgrades Through

Modernization

VLCC

• Scrubber (85% SOx reduction)

• Tier III engine (75% NOx reduction)

• Ballast water treatment system

• Fuel efficient design (20% lower fuel

consumption)

Aframax

• Scrubber (85% SOx reduction)

• Tier III engine (75% NOx reduction)

• Ballast water treatment system

• Fuel efficient design (20% lower fuel

consumption)

Suezmax

• Scrubber (85% SOx reduction)

• Tier III engine (75% NOx reduction)

• Ballast water treatment system (BWTS)

• Fuel efficient design (30% fuel savings)

© 2017 Chevron

Fleet Upgrade Highlights

New hull design2%+ efficiency increase in calm water

10%+ efficiency increase in sea state 6

due to sharper bow with less resistance

from wave reflection

Propulsive Energy Saving DevicesWake Equalizing duct combined with a

rudder bulb give ~4% efficiency increase

Main Engine Fuel ConsumptionCurrent 12yrs old VLCC: 113 mt/day vs

New VLCCs: 82mt/day

Sulfur ScrubberMeets or exceeds worldwide sulfur

emissions standards

10© 2018 Chevron

© 2017 Chevron

NOx Reduction TechnologyMain Engine: Exhaust Gas RecirculationAuxiliary Generators: Selective Catalytic Reduction

SW Cooling System and E/R Ventilation System Energy Saving Device Variable Frequency Drive controlled motors match motor speed with cooling and ventilation demands instead of running 100% power all the time

Variable Frequency Drives on Ballast Pump Motors Allows for control of ballast rate by reducing pump output instead of throttling discharge valve on pump that is always running 100% power

11© 2018 Chevron

Waste Heat Recovery Device on 2 Auxiliary generators Our first ships to recover energy (in the form of steam) from generator exhaust. 600kg/hrof steam made for heating purposes with no additional fuel burned. (Always standard on main engines.)

© 2017 Chevron

Commercial OperationsManaging Chevron’s marine transportation requirements

One of the largest tanker charterers

in the world

• Transports crude, products, LNG,

LPG, and chemicals for Chevron

operating companies and affiliates

• Charters quality third-party tonnage

to supplement the operated fleet

• Worldwide commercial staff

manages more than 2,000 voyages

per year

• Handles voyage operations,

demurrage and other claims

management

• Co-located with key Chevron

partners in five offices around the

world

12© 2018 Chevron

© 2018 Chevron

• VLGC – 2 Ships, 5 year agreement

Scrubber (85% SOx reduction)Tier III engine (75% NOx reduction)Ballast water treatment system (BWTS)“Green” fuel efficient design

© 2017 Chevron

How are we doing?

14© 2018 Chevron

Shrontz

Maria

Aries

Arcturus

HN5441s (New VLCCs)

50

60

70

80

90

100

1995 2000 2005 2010 2015 2020

FUEL

CO

NSU

MP

TIO

N (

MT)

YEAR

VLCC Fuel Consumption through 1997-2018

37

68

33

1

8

13

911

20

1

61

0

10

20

30

40

50

60

70

80

90

100

Fleet Emission Reduction from 2000 to 2018

Base(pre 2000)

VLCC

Suezmax

Aframax

US FlagCO2

SOx NOx

Emis

sio

n %

© 2017 Chevron

What’s Next?

16© 2018 Chevron

At Berth

Cold Ironing, Capture and Control

GHG

IMO Strategy

40% reduction in carbon intensity by

2030, 70% by 2050

Short Term

Modifications, On-time arrivals

Longer Term

Alternative Fuels

Biofuels, wind, battery, ammonia,

hydrogen, nuclear

VOC, Underwater Noise, Bio-fouling,

Black Carbon

MBM – Carbon trading, carbon tax,

bunker tariffs

© 2017 Chevron

the next big thing!

17© 2018 Chevron

No surprise… Green House Gases -- We’re moving towards zero carbon.

It may seem like a long time from now, but we need to be planning today if

we’re going to surf the wave.

Todays vessels will be operating in 2030.

It’s time to design ships that meet post 2030 requirements to be ready for

2050.

– Photo by Lucas Gilman